PERTH (miningweekly.com) – ASX-listed junior Chalice Gold Mines has executed two agreements to gain further exploration exposure as part of its strategy to target a limited number of high-quality, drill-ready targets.

Under the first transaction, Chalice has agreed to subscribe for more than 3.33-million shares and 3.33-million free attaching options in unlisted GeoCrystal, at a price of 15c each for a total investment of A$500 000.

Following the placement, Chalice will own 10.1% of GeoCrystal. The company has given Chalice the option to acquire a further 2.1-million shares, at 20c each, to take the company’s stake to 19.9%.

GeoCrystal is earning a 70% interest in the Webb diamond project, in Western Australia, which had a large kimberlite field.

Chalice has also entered into a second transaction with ASX-listed Uranium Equities over its Oodnadatta and Marla projects, in South Australia.

The farm-in agreement would give Chalice the right to earn a 70% interest in both these projects by sole-funding a total of A$5.5-million in exploration expenditure. Chalice could earn an initial 51% interest by sole funding A$2.5-million, but there was no minimum spend required before withdrawal.

The Oodnadatta and Marla projects comprise 16 granted exploration licences, and both projects were in a province with a high iron-oxide/copper/gold/uranium endowment.

“While our search for a cornerstone asset is progressing well, where we have definitely seen the quality of opportunities available improving significantly over the last six months, the board has approved a second leg to Chalice’s strategy in order to take advantage of the ongoing tightness in the equity markets and the decline in drilling costs, by targeting a limited number of high-quality, drill-ready exploration opportunities on a deal-by-deal basis,” said Chalice MD Bill Bent.

He noted that the two transactions provided Chalice shareholders exposure to two exploration plays, which had the potential to host world-class deposits.